Many people think of “accommodations” with traditional hotel and resort room offerings in mind—but that mental image is incomplete at best.
With more and more travelers seeking out unique experiences in recent years, outdoor accommodations like holiday parks and campground rentals are steadily pushing the industry to reimagine what “a place to stay” can look like.
These holiday parks, often nestled in scenic landscapes, offer a diverse array of lodging options that range from cozy cabins and luxury tents to caravan sites and treehouses. While the recent upswing in adventure-seeking travelers is a welcome sight for holiday park owners, this demand also presents some unique challenges for owners and staff as they seek to maximize their property’s revenue potential. To do so requires dynamic pricing strategies—and IDeaS G3 RMS is well-equipped to help outdoor accommodations providers put this proven approach to work for them.
The complexity of holiday park inventory
Unlike standard city hotels or resorts, holiday parks often boast a multifaceted inventory that requires a dynamic approach to revenue management. Each accommodation type, whether it’s a lakeside cabin, a spacious caravan site, or a charming glamping tent, presents a unique set of considerations.
Revenue management of outdoor accommodations requires a nuanced approach due to the diverse lodging types and varying expectations of guests. Diverse inventory means that each accommodation type appeals to different guest segments and their value propositions vary significantly. It is also important to consider that seasonal demand fluctuations can be more pronounced in holiday parks compared to city center hotels. For example, lakeside cabins may offer higher rates during peak seasons while the caravan sites may be more price-sensitive and cater to budget-conscious travelers.
Deciphering competition in a unique landscape
Identifying competitors for holiday parks isn’t as straightforward as it is for more traditional lodging. As travelers plan their getaway to someplace close to nature, their considerations extend far beyond the conventional notion of nearby rival hotels or resorts. When choosing a holiday park, they’re not just comparing rates with neighboring accommodations; they’re contemplating experiences across landscapes and diverse locales.
Imagine a family considering a visit to a national park over summer break. Their decision is likely not just limited to their lodging, but rather, which national park they will visit, the weather, how they will get there, and more. So, in their diligent research they are comparing lodging accommodations in Yosemite National Park for example, to similar options in Yellowstone and Grand Canyon. Ultimately, the location with the right product, the right experience, and right price will win and determine where they’ll be making their memories.
A scenario like this is where G3 RMS’ shines, as it can be configured to use truly similar accommodation types from specific locations to serve as a comparison point. To illustrate, one can compare Yosemite’s RV sites with roughly equivalent options near the Grand Canyon, all the while making comparisons between the cabins at both locations.
Effectively determining and analyzing the competition is crucial for formulating a dynamic pricing strategy that accurately reflects the market landscape.
The pitfalls of static pricing
Static pricing is the traditional approach to setting room rates, where all similar inventory has a uniform fixed price that is infrequently adjusted. While “setting and forgetting” is simple to implement, it also sells the revenue potential of your property short. Fixed rates fail to quickly account for the fluidity of demand that varies across seasons, events, and accommodation types and ultimately influences what guests are willing to pay.
In the absence of real-time changes, holiday parks risk losing potential revenue during peak periods or overpricing during low-demand times, resulting in suboptimal occupancy rates and missed opportunities. The result? Leaving money on the table.
Unlocking the potential of dynamic pricing
Dynamic pricing, the cornerstone of modern revenue management, is the right solution for the challenges posed by holiday park inventory structures. By analyzing historical data, market trends, and competitor pricing, G3 RMS’s dynamic pricing can optimize rates for each inventory type individually.
IDeaS has a proven track record of effectively managing diverse inventory types. The adaptability in handling these varying lodging types translates seamlessly to outdoor accommodations. No matter how unique or complex the offerings of your space are, we’re able to configure for it and provide effective, automatic, and dynamic pricing changes.
Another factor to consider with holiday parks is that it is common for guests to secure their bookings well ahead of time, anticipating the upswing in demand. This trend is particularly true for repeat guests who might eagerly book their holiday for the next year as they are leaving the park. However, by understanding the booking patterns of diverse customer groups and effectively forecasting demand, you’re positioned to capitalize on demand and automatically offer the best price for your accommodation inventory.
The demand for holiday parks can change quickly, so it is important to be flexible with your pricing strategy. You may need to adjust your prices frequently to stay ahead of the market. This is where G3 RMS become invaluable.
Painting a picture of optimized revenue management
Imagine a holiday park where each accommodation type has a tailored price that aligns seamlessly with traveler demand and market dynamics. As guests browse through options, they find rates that not only reflect the true value of their chosen experience but also ensure that the park maximizes its revenue potential. Dynamic pricing translates into happier guests who perceive fairness in their bookings and a management team that optimizes revenue streams with confidence.
IDeaS clients are already experiencing the benefits that G3 RMS brings to their outdoor accommodations.
“With so many different customer types to approach and different pricing and marketing strategies to consider, only automation can give us a real advantage and enable us to easily perform various revenue management-related tasks,” says Aizhana Zhantuarov, chief operating officer of Club del Sole. “With IDeaS G3 RMS, we immediately appreciated the automated features and the exclusive strategy for inventory unit types. Pricing, restrictions, and overbooking decisions are fully automated, but if necessary we can take manual control of the system to enter real-time market data, or easily integrate reputation or competition data into forecasts and business strategy.”
Is your property ready for the power of dynamic pricing?
The evolution of holiday parks from static into dynamic pricing showcases the adaptability of the hospitality industry to changing traveler preferences. By embracing dynamic pricing, these parks can step into a realm where revenue management isn’t a one-size-fits-all concept but a carefully crafted strategy that responds to the intricate web of accommodation types, seasons, and competitors.